AHDB Pork Weekly Export Bulletin

BPEX Export Bulletin - Week 31

With the new system for pork exports to the Republic of South Africa (RSA) that segregates pork for further processing from pork from certain PRRS-free cuts, the import license system has been modified.

Importers must now apply to www.daff.org.za for an import permit, indicate whether the meat is for further processing or unrestricted sales, a clear description of the cuts, name and number of the approved cold store at port of entry. Should the pork be destined for further processing, the name and number of the plant; should the pork be destined for free sale, the reference number of the cuts.

France

New plans in Rungis

Initial enthusiasm to refurbish the pig meat hall at Rungis is weakening; business in the pig sector on Rungis is reported to have declined by 6% which may alter plans. In fact, Semmaris (Administration and Management of Rungis Market) is seriously considering the possibility of the pig meat operators joining red meat wholesalers in the recently refurbished red meat hall, V1P.

Porc Armor Evolution

The producer group based in Brittany is now the 4th largest player in France with a turnover of €266m in 2012. With 27 new members and 72 new suppliers recruited last year, the group is expecting to reach production of two million pigs in 2014.

Markets

Pigs: Prices were stable last week on European markets. Stability or small increases around Europe are predicted in the coming few days, especially in France and Germany, due to the month-end and school holidays. Supplies are estimated to be limited; however, demand could improve at the beginning of August.

Piglets: The European market at pork butchers slowed down a little last week, prices were stable and prospects remain good for the next few weeks. At the same time, production costs may decrease resulting in fatteners looking to buy more piglets. Supplies are limited with prices predicted to remain stable or move slightly higher.

Pork prices RUNGIS week commencing 29 July 2013

Cut name

Price range (Euro/Kg)

Back fat, rind-on

0.65

Trimmings

1.52

Leg

2.67

Loin including chump

3.22

Loin excluding chump

2.82

Belly extra without trimmings

2.88

Denmark

Higher throughputs

A year ago, the boom in piglet exports resulted in slaughterhouses struggling to fill capacity. However, this year, slaughterings have stabilised. Tican has received significantly more pigs compared with last year, after introducing various schemes to attract finishers. Supplies were also boosted in Thisted following the bankruptcy of Jutland Meat. (Source, JyllandsPosten)

Markets

The start of the industrial holidays in southern Europe has resulted in lower demand from the processing industry. However, the marker has remained reasonably balanced as slaughter pig supplies have been low. Fresh legs are sold at unchanged prices. Following recent price rises, lower volumes to the British bacon market have been reported. Demand from Asia remains stable with solid demand reported from Russia.

Danish Slaughterhouses - payments week commencing 29 July 2013

Slaughterhouse

Danish Crown

Tican

Slaughter pigs (70.0 – 86.9 kg)Difference to last week

Euro 1.561+0.027

Euro 1.561+0.027

Sows (Above 129.9 kg)Difference to last week

Euro 1.105+0.273

Euro 1.105+0.27

Boars (Above 109.9 kg)Difference to last week

Euro 0.973+0.27

Euro 0.973+0.27

Germany

Reduced demand

While demand for pigs was comparably high at the beginning of last week, slowing demand has resulted in recommended prices remaining unchanged. The holiday season in nearly all German regions is behind the fall in demand. Retailers have been unable to pass on recent price increases, squeezing margins. In addition, pig numbers are reported to have increased on the week although the overall market situation remains roughly in balance.

Pork Prices Hamburg Market Week commencing 29 July 2013

Cut name

Price range (€ / kg)

Round cut leg

2.50/2.60

Leg (boneless, rindless max fat level 3mm)

3.40/3.60

Boneless Shoulder

2.75/2.85

Picnic Shoulder

2.15/2.30

Collar

2.95/3.10

Belly (bone in, ex-breast)

2.50/2.65

Sheet Boned Belly (rindless)

2.35/2.55

Jowl

1.70/1.80

Half Pig Carcasses U class

2.14/2.22

Spain

Pork prices Barcelona Market Week commencing 29 July 2013

Cut name

Price range (€ / kg)

Gerona Loin Chops

2.78/2.81

Loin Eye Muscle

3.83/3.86

Spare Ribs

3.18/3.21

Fillets

5.38/5.41

Round Cut Legs

3.18/3.21

Cooked Ham

2.72/2.75

Rindless Picnic Shoulder

1.72/1.75

Belly

2.37/2.40

Smoked Belly with Spare Rib Section Cut off

2.80/2.83

Shoulder chap or Head Jowls

1.18/1.21

Back Fat, Rindless

0.68/0.71

EU

Denmark still leads on competitiveness

A major study by Anne-Marie Roussillon of the French organisation IFIP shows that Denmark still leads the European pack in terms of competitiveness. The study looks at five countries: Denmark, France, Spain, Germany and the Netherlands. Despite high debt levels, the Danes score well on the organisation of the pork chain, government support, trade, structure of the processing sector, large farms and a high level of investment. The French score very badly in every aspect, bar the importance of the butchery sector. The Germans underperform on sow productivity and lack of investment in pig production. The Dutch weakness is, unsurprisingly, the cost of manure disposal. The Spanish get a high note for the strength of their local market and exports but lag behind in terms of processors’ size. (Source, Porc Magazine)

Russia

ASF compensation

Following the proposal to ban pig breeding in private households to prevent the spread of ASF, it has been announced that the Russian government will provide compensation, subsidies and preferential credits to affected farmers. Meanwhile, the Association of the Agricultural Enterprises and Co-operatives has written a letter, signed by 57 regional farmers’ unions, to Vladimir Putin informing him that larger pork producers are using ASF as a lever to reduce competition from small farmers. According to Rosselkhoznadzor, a case of ASF has been detected in the Uriupinskiy region of Volgogradskaya oblast which was confirmed following laboratory analysis. (Source, PigUa.info & Ria.ru)

Ukraine

Lower pork imports

Increased pork production in the Ukraine resulted in weaker demand for pork imports. As result, pork imports in the first half of 2013 were 15% lower on the year at 71,000 tonnes. (Source, PigUa.info)

China

Tianzhao moves to Canadian semen

Tianzhao Swine Industry Co., Ltd., located in Nanchong City, Sichuan, has introduced frozen semen from Canadian FAST for 1,000 sows this year.

More CP investment

CP Group plans to invest RMB 650m (£65m) in Jinsha County, Guizhou, to set up 18 pig farms, including some breeding units.

Chinese wholesale prices week commencing 29 July 2013

Price (RMB/Kg)

£/Kg

Change on week

Pig Carcase

21.02

2.26

+1.74%

Source: BOACL

Prices collected from wholesale markets in 36 medium and large Chinese cities